Electricity access and economic development: Leveraging climate finance in sub-Saharan Africa11The authors thank Florence Jaumotte, Eva Jenkner, Catherine Pattillo, Hugo Rojas-Romagosa, Antonio Spilimbergo and Nico Valckx for valuable comments. The views expressed here are those of the authors and should not be attributed to the International Monetary Fund, its Executive Board, or its management

Electricity supply per capita in sub-Saharan Africa (SSA) has gradually declined between 2004 and 2021 and almost half of the population still does not have access to electricity. Research so far has not quantified the prospective benefits from leveraging existing climate finance for investment in renewable energy in a regionally disaggregated model for SSA. This gap is filled to identify how SSA could benefit from the rapid development of renewable energy. A computable general equilibrium (CGE) model is extended, where SSA is represented by five major countries and four regional aggregates, reflecting the specificities of their economies and energy system. Results show that boosting the economy and energy supply in SSA significantly is well within existing climate finance commitments. Investments of the tune of $25 billion per year can boost the annual GDP growth rate 0.8 percentage point and increase electricity generation by about 17 %. At the regional level, outcomes vary by development level, initial state of the energy sector and emission intensity.